Question: Best Parking near an airport incurred the following costs to

Best Parking, near an airport, incurred the following costs to acquire land, make land improvements, and construct and furnish a small building: a. Purchase price of three acres of land $ 89,000 b. Delinquent real estate taxes on the land to be paid by Best Parking 6,000 c. Additional dirt and earthmoving 8,000 d. Title insurance on the land acquisition 3,600 e. Fence around the boundary of the property 9,100 f. Building permit for the building 800 g. Architect’s fee for the design of the building 20,200 h. Signs near the front of the property 9,400 i. Materials used to construct the building 212,000 j. Labor to construct the building 172,000k. Interest cost on construction loan for the building 9,300l. Parking lots on the property 28,900 m. Lights for the parking lots 10,100 n. Salary of construction supervisor (75% to building; 25% to parking lot and concrete walks) 40,000 o. Furniture 11,500 p. Transportation of furniture from seller to the building 2,000 q. Additional fencing 6,900 Best Parking depreciates land improvements over 25 years, buildings over 50 years, and furniture over 12 years, all on a straight-line basis with zero residual value.

Requirements 1. Set up columns for Land, Land Improvements, Building, and Furniture. Show how to account for each cost by listing the cost under the correct account. Determine the total cost of each asset. 2. All construction was complete and the assets were placed in service on July 1. Record partial-year depreciation expense for the year ended December 31.